Digital Branding Capability and Sustainability Marketing in Enhancing the Performance of Creative Industry SMEs in East Java

Maisyatus Su'adaa Irfana; Mochamad Fatchurrohman; M. Azizul Khakim; Purwanto

doi:10.63922/ijebir.v5i03.3791

Maisyatus Su'adaa Irfana Department of Management, STIE Mahardhika Surabaya
Mochamad Fatchurrohman Department of Digital Business, STIE Mahardhika Surabaya
M. Azizul Khakim Department of Management, STIE Mahardhika Surabaya
Purwanto Department of Management, STIE Mahardhika Surabaya

DOI: https://doi.org/10.63922/ijebir.v5i03.3791

Keywords: Digital Branding Capability, Sustainability Marketing, Customer Engagement, SME Performance, Creative Industry MSMEs

Abstract

The rapid growth of the digital economy has encouraged Micro, Small, and Medium Enterprises (MSMEs) in the creative industry sector to strengthen their competitiveness through digital branding and sustainability-oriented marketing strategies. However, many creative MSMEs in East Java still face challenges in optimizing digital branding capability and implementing sustainability marketing to improve business performance in the digital era. Therefore, this study aims to analyze the effect of digital branding capability and sustainability marketing on SME performance through customer engagement as a mediating variable among creative industry MSMEs in East Java. This study employed a quantitative approach with an explanatory research design. Data were collected from 200 creative MSME owners in East Java using purposive sampling techniques. The analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the assistance of SmartPLS. The findings indicate that digital branding capability and sustainability marketing have positive and significant effects on customer engagement and SME performance. Furthermore, customer engagement significantly affects SME performance and partially mediates the relationship between digital branding capability, sustainability marketing, and SME performance. These findings suggest that strengthening digital branding capability and sustainability-oriented marketing strategies can improve customer relationships and enhance business competitiveness among creative MSMEs. Practically, this study provides managerial insights for creative MSMEs in developing effective digital branding strategies, strengthening sustainability communication, and improving customer engagement to support long-term business performance and competitive advantage in the digital economy.

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